Kea Petroleum PLC Update on Disposal (6891E)
November 05 2015 - 6:07AM
UK Regulatory
TIDMKEA
RNS Number : 6891E
Kea Petroleum PLC
05 November 2015
5 November 2015
Kea Petroleum plc
("Kea" or the "Company")
Update on Disposal
Further to the shareholder vote on 13 July 2015 approving the
proposed disposal of Kea's oil and gas assets and the proposed move
to become an investing company, Kea provides an update on the
process.
The disposal of the Company's Puka asset is still awaiting the
consent of the New Zealand Petroleum and Minerals, the regulatory
body for oil and gas, giving a Section 41 approval to sell Kea
Petroleum Limited's 70% share of the PEP51153 licence area. The
Company expect to receive this shortly and, subject to that
happening, the company will have sufficient funds to complete the
divestment phase [but will need to raise further funds to seek a
restoration of trading in the Company's shares and begin
reactivation as a shell company with a different activity. The
Company has made progress towards identifying opportunities that it
may pursue as an investing company.
As disclosed in the previous Annual Report Kea has been involved
in an ongoing litigation with NRG Drilling. This is in relation to
drilling costs it was seeking from Kea. Whilst the Company viewed
the claim as vexatious, and believed that it had a robust defence
to the claims and a strong counterclaim, albeit against a company
with no assets, and given the decision to cease as an oil and gas
company it was decided to place those NZ subsidiaries involved in
the litigation into liquidation rather than to run up additional
costs associated with a High Court hearing. The effect of this is
that the asset held by Kea Exploration Limited, PEP381204 that
includes the Mauku prospect, falls under the control of the
Official Assignee who will make a decision on the proposal to sell
the asset that had been subject to a conditional heads of terms
with New Endeavour Resources.
The Company has sought to keep costs to a minimum and the number
of employees has been significantly reduced, down from 17 in 2012
to just six today, including the Board, in order to reduce costs
and realign with the Company's current size.
The Company's financial position remains critical and is
currently dependent on the forebearance of its creditors and
Directors who have not been paid. The Company will need to raise
additional funds for its present needs and also to continue as an
investing company following the proposed disposal of Puka .
Trading in the Company's shares was suspended from 26 May 2015,
pending clarification of its financial position. Pursuant to the
AIM Rules for Companies, the admission of the Company's shares will
be cancelled if the Company's shares are not restored to trading by
the 26 November 2015. Consequently, the Company is seeking to raise
further funds by that date and seek a restoration of trading.
For further information please contact:
Kea Petroleum plc Tel: +44 (0)20 7340 9970
David Lees, Executive Director
WH Ireland Limited (NOMAD) Tel: +44 (0)20 7220 1666
James Joyce / James Bavister
Buchanan Tel: +44 (0)20 7466 5000
Mark Court / Sophie Cowles
This information is provided by RNS
The company news service from the London Stock Exchange
END
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